Paytm block deal: 1.4% equity changes hands via multiple block deals; stock rises

Paytm share price: One 97 Communications shares jumped over 7 per cent in Tuesday's trade (February 6) after hitting back-to-back lower circuits for three sessions.

The stock of the Paytm parent company climbed after 89.3 lakh shares, or 1.4 per cent of equity, changed hands in the pre-open session and 18 lakh shares, which implies 0.28 per cent of shares changed hands after the market opened via multiple block deals.

At around 10:21 a.m., shares of Paytm traded 6.95 per cent, or Rs 30.45, higher at Rs 465.25 apiece. Meanwhile, its market capitalisation stood at Rs 29,547.11 crore at around the same time.

On Monday, after market hours, Paytm denied being in talks with Jio Financial Services about selling its wallet business.

"With reference to the captioned subject, we clarify that the abovementioned news item is speculative, baseless, and factually incorrect. We have not been in any negotiations in this regard. We have been informed by Paytm Payments Bank Limited, our associate company, that they have also not been in any negotiations in this regard," the filing read.

Meanwhile, Jio Financial Services shares declined over 4 per cent a day after hitting an all-time high.

Read more: Paytm hits a 52-week low after denying reports of selling its wallet business 

What happened at Paytm?

The Reserve Bank of India (RBI) last week ordered Paytm Payments Bank Ltd (PPBL), a restricted bank that can take deposits but cannot lend, to not take any further deposits, conduct credit transactions, or carry out top-ups on any customers' accounts, prepaid instruments, wallets, or cards for paying road tolls after February 29.

Paytm wallet customers can use the money until their balance is exhausted. They cannot add money after February 29. And in case the RBI does not relent, top-ups for the Paytm wallet will stop, and transactions through it can no longer be carried out.

READ MORE: Paytm shares hit the lower circuit again; Anil Singhvi suggests exiting the stock

Paytm share price: Past performance 

In a year, shares of Paytm have lost over 16 per cent against the Nifty50's rise of over 23 per cent.

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.